Our senior team has advised on many noteworthy technology and defense deals over the last ten years.

KippsDeSanto & Co. is pleased to send you the attached press release announcing the acquisition of our client, Tactical Micro, Inc. (“Tactical Micro” or the “Company”), a portfolio company of Relativity Capital LLC (“Relativity”) by Secure Communication Systems, Inc. (“Secure”), a portfolio company of Vance Street Capital LLC (“Vance Street”). Secure designs and manufactures ruggedized electronics for military, homeland security, and transportation markets, and its acquisition of Tactical Micro will enable it to expand its customer base into key military training and metropolitan transit markets, while broadening its product offerings.

Headquartered in Fredericksburg, VA, Tactical Micro is an industry-leading provider of high-end audio / video instrumentation and surveillance technology solutions for live fire military training and civilian customers. Historically, the Company’s primary customer has been the U.S. Army, including a notable presence within the Program Executive Office of Simulation, Training, & Instrumentation (“PEO STRI”). Tactical Micro has successfully transitioned into commercial markets as well, and is currently supporting a complex surveillance effort for the Washington Metropolitan Area Transit Authority (“WMATA”). Through its partnership with Secure, Tactical Micro expects to deliver even greater value to its customers, as well as identify additional avenues for growth.

We believe this transaction demonstrates several key trends in the defense M&A environment:

KippsDeSanto & Co. is an investment bank focused on delivering exceptional M&A and financing transaction results for leading technology and defense companies. For more information on KippsDeSanto & Co., please visit www.kippsdesanto.com.

We welcome the opportunity to discuss how KippsDeSanto & Co. can help you achieve your strategic objectives. For more information on this particular transaction, please contact Karl Schmidt at 703.442.1413 or kschmidt@kippsdesanto.com.

KippsDeSanto & Co., member FINRA/SIPC, is not affiliated with other companies mentioned herein.

LOS ANGELES – January 2, 2014 – Vance Street Capital LLC, a Los Angeles-based private equity firm, announced today that it has acquired Tactical Micro from Relativity Capital, an Arlington, Virginia-based private equity firm. Terms of the transaction were not disclosed. Tactical Micro is the third add-on acquisition for Secure Communication Systems, a designer and manufacturer of rugged computer and information assurance systems.

Based in Fredericksburg, Virginia, Tactical Micro is a premiere provider of high-end training, instrumentation and surveillance solutions for military and commercial customers. The company’s products are used in support of military training, metropolitan security systems and other complex surveillance solutions.

“Tactical Micro has an impressive track record of consistent revenue growth,” said Allen Ronk, CEO of Secure Communication Systems. “The success of the company is a testament to its talented management team, its dedicated employees and innovative technology. We believe that Tactical Micro complements our current product offerings and we look forward to working together to further grow our businesses. ”

“This acquisition is a strong strategic fit for Secure and we expect Tactical Micro’s transition to be seamless,” said Brian Martin, principal at Vance Street Capital. “Having Tactical Micro on board will help Secure further diversify its end markets.”

Tactical Micro’s founder and president, John Moulton will retain an ownership stake in the company and will continue to serve as president.

“We are excited to partner with Secure and Vance Street Capital,” Moulton said. “Secure and Tactical Micro share strong engineering backgrounds and a commitment to excellence. As a division of Secure Communication Systems, we will be well positioned for the next phase of our company’s evolution.

Tactical Micro is an engineering systems integration company specializing in range instrumentation and audio/video broadcasting and recording systems for use in military training and commercial applications. Tactical Micro engineers have over 50 years of combined experience in developing military range training products and supporting military range instrumentation projects. The company is headquartered in Fredericksburg, Virginia and also has an office in Orlando, Florida.

About Secure Communication Systems

Secure Communication Systems designs and manufactures high reliability tactical mission computing systems, encryption equipment, communications products and related equipment for defense and commercial applications. The company offers handhelds, rugged tablet PCs, workstations and servers, routers, accessories, translators, tactical displays, and ultra-mobile PCs for various branches of the military as well as for commercial applications. The company was founded in 1986 and is based in Santa Ana, CA. For more information please visit: http://www.securecomm.com.

About Vance Street Capital

Vance Street Capital is a Los Angeles-based private equity firm that makes control investments in companies with enterprise values up to $200 million. Preferred industries include precision industrial manufacturing, aerospace & defense and medical components and devices. For over two decades, Vance Street’s partners have worked with management, family owners and other co-investors to accelerate revenue growth, improve operations and acquire strategic assets for the companies in their investment portfolio. For more information please visit: www.vancestreetcapital.com